PATHS OF RURAL DEVELOPMENT BASED ON TYPICAL PRODUCTS:

A COMPARISON BETWEEN ALTERNATIVE STRATEGIES

GIOVANNI BELLETTI, ANDREA MARESCOTTI, SILVIA SCARAMUZZI

Department of Economics, University of Florence. Via Curtatone, 1 – 50123 Firenze. This work has been made
within Ricerca di Ateneo “Marchi collettivi di qualità e meccanismi di coordinamento tra imprese. I prodotti
con indicazione di origine territoriale” (University of Florence, year 2001).

Abstract
Agro-food typical products are the expression of the area of origin, and they are therefore one
of the most evident manifestations of locality both for people belonging to the area and not.
For this reason typical products often play a central role in the development strategies carried
out by local actors in rural areas, though with different points of view, depending on the
existence of various interests related to the typical product, that are the expression of the
different categories of agents that are directly or indirectly involved in its valorisation.
The paper aims at giving a general framework to systematise the valorisation strategies of
agro-food typical products in order to identify their potential impacts on rural development
processes, and in particular on their sustainable, integrated and endogenous characters.
To reach this aim a case study analysis has been carried out, where a central role is played by
the focus of the actors involved in the valorisation strategies.

1. Typical products within rural development

Agro-food typical products are an important expression of the peculiarities of rural areas, and
hence they can play an important role in rural development strategies.
The link between the typical product and its territory comes out not only from paedoclimatic
peculiarities and its strong link with localised specific production assets, both of material (i.e.
specific plant varieties or animal breed) and immaterial nature (i.e. knowledge of local
agents); actually the link of the product with the territory also has a socio-anthropological
origin as it derives also from the local culture, when it characterises the “historical memory”
of the local population and it represents a catalyst of identity (Bérard and Marchenay, 1995).
The link of the typical product with its area of origin makes it unique, and may represent an
important differentiation leverage for producers on the market, easing the way to increase
sales volumes and to gain a “premium price” on the market coming from the intrinsic specific
quality of the product and/or from the “quality” of the area it comes from. The premium price
gained by typical product may originate a so-called “rent of origin”, based on the
geographical name of the product.
The rent of origin in some cases may be transferred into an extra-remuneration (economic
rent) gained by non-transferable and (partial) irreproducible assets used in the production
and/or valorisation of the typical product. In other cases the rent of origin can guarantee only
a normal remuneration for the assets which are less efficient than the standard ones; in fact
usually production costs are much higher than “conventional” (or industrial) ones, due to the
use of traditional and labour-intensive techniques in the production process, often realised in
marginal and disadvantaged areas. Besides, assets used for the production of typical products
are hardly transferable in the production processes of “standard products” (ex: labour and
specific skills, land arrangements, etc.), so that their adequate remuneration can only be
attained if the output is sufficiently enhanced.

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There is also another important aspect to take into account: as a matter of fact, the link
between product and territory may also originate territorial and non-territorial externalities,
which may be internalised by local and extra-local actors not directly involved in the
production process (ex. restaurants and hotels, traders, travel agencies, craftsmen, museums,
etc.).
The premium price and/or higher sales on the market, coupled to the geographical non-
transferability and (at least partially) the supply rigidity which characterise the specific local
assets used in the production process of the typical product, may give origin to economic
rents, which may benefit both by the owners of the assets used in the production process, and
by other actors whose assets are directly or indirectly connected to the typical product. That is
why very frequently the possibility of capturing this rent rises the attention of many different
actors’ categories (supply chain firms, public institutions, cultural associations, craftsmen,
etc.), sometimes even external to the production area (ex. mass distribution companies,
traders), which show diversified interests to fulfil. Sometimes these interests converge around
a valorisation project, in other cases they lead to conflicts.

2. Aims and Methodology

The general aim of this paper is to give a framework to systematise the key-variables within
the valorisation strategies of agro-food typical products in order to identify their potential
impacts on rural development processes, and in particular on their sustainable, integrated and
endogenous characters1.
We have carried out a case study analysis centred on the focus of the actors involved in the
valorisation strategies. The diversity of the actors and of their interests (economic, social,
political, scientific, etc.) leads to a diversity of objectives that are locally pursued through the
valorisation of the product. With regard to this, we have operated a main distinction based on
the attention of local actors, which may be either strictly focused on the supply chain of the
typical product, or mainly on the other components of the rural economy and society
(Pacciani, Belletti, Marescotti and Scaramuzzi, 2001).
The case-studies have been selected from a wider survey carried out in Tuscany in the period
2000-2001 on the most relevant typical and traditional products of the region. We adopted
open qualitative interviews, a choice motivated by the fact that our goal was, to gather
information on the situation and evolution of the interests of the different actors involved in
the valorisation processes of the typical products.
The selection of the interviewees has been based on the critical case sampling. In other terms,
the chosen actors are those who represent a key-element for the understanding of the matters
covered by the study or have a particular capacity of influencing the development of the
valorisation process of the typical product. Therefore our aim was not so much to build a
statistically representative sample, as to maximise information on a specific subject.

1
The concept of rural development, as also emerges in European Union official documents, may be
synthesised through three keywords:
- endogenous: rural development should be mainly based on local resources (goods, skills, contextual
knowledge) and actors’ ability to build projects; community participation in the definition and sharing of
objectives (bottom-up) is a central point;
- integrated: rural development is not only agricultural development, but it considers the integration of all
the economic and social activities at a local level (tourism, craft or industrial manufacturing, services,
social activities);
- sustainable: rural development dynamics should work in a way that the resources used in the production
processes are reproduced (complete production process), with special reference to environmental and
cultural resources. The respect of natural and social environment plays a central role in the rural
development process.

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In the following paragraphs we will describe some case studies2 that highlight the two
mentioned different perspectives (supply chain focus, extended territorial focus; par.3.1 and
3.2) and how the previous strategies may be interrelated and have reciprocal activation effects
(from supply chain focus to extended territorial focus and viceversa, par. 3.4).

3. Typical products, valorisation and local actors: a case-study analysis

3.1. The supply chain strategies

Very often valorisation strategies of the typical product are strictly focused on the supply
chain of the typical product.
This kind of strategy is normally activated by firms belonging to the area of production and
involved in the supply chain that share a common “product culture” (homogeneity of
techniques and product characteristics), or by their associations. Local public institutions
often support these initiatives because they can strengthen and foster an important part of the
local economy.
The aim of the local actors is to obtain a satisfactory remuneration of the specific assets
directly used in the production process of the typical product, by defending or relaunching it
in reply to the general trends towards mass consumption by levering on the value of the
territorial origin of the product recognised by consumers.
The pivot of this strategy is represented by the geographical “name” of the typical product, as
information summary on the (intrinsic) quality of the product for the consumer (Pacciani,
Belletti and Marescotti, 2001). In fact the geographical name of the product, when is well
know by the consumers, allows to create a rent associated with the territorial origin, that can
be appropriated by the local actors of the supply chain by means of reputation mechanisms
(Belletti, 2001).
The general aim of the actors of the local production system is to transform the geographical
name of the typical product into a collective form of intellectual property, that is into a
“mark” (Moran, 1993), to maximise at a local level the positive effects coming from the
typical product.
Two main cases usually apply: either the typical product already has a recognised reputation
and the initiative aims at defending the rent; or the product reputation is limited or partially
dissipated and the actors aim at creating or increasing the rent of origin.
When the product geographical name has a value “per se” among the consumers, the actors
who promote the initiative aim at limiting the use of the product name. Such an “institutional
barrier” obtained through product reputation institutionalisation (Polidori and Romano, 1997),
by creating a common protective belt on the market, partially shifts the competitive problem
to the sharing of the origin rent among local firms (Cavailhes et al., 1987).
Very often the tool used is the Protected Designation of Origin (PDO) or Geographical
Indication (PGI) (EU Reg.2081/92), which allows the local actors to obtain an exclusive right
in using the geographical name and to defend it from unfair uses of both local and external
actors.
PDO/PGI recognition requires the definition of Product Specifications agreed on by the
community of local producers, that establishes the boundaries of the production area,
production methods and product characteristics.
The recognition process of a PDO/PGI often raises conflicts between different economic
actors typologies and interests, as highlighted by the case of Tuscan extra-virgin olive-oil.

2
To fulfil the identified objective of the paper the following case description will be centred on the phases of
elaboration and activation of the strategies and not on their implementation phase.

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Product reputation institutionalisation: the case of Tuscan extra-virgin olive-oil
Tuscan extra-virgin olive-oil has always enjoyed a high renown on national and international
markets. In the 80s owing to the increasing unfair uses of the name Tuscan also by some large
firms, the regulation of the use of the Tuscan name became unavoidable. In these years
traditional direct-selling to local consumers became more and more difficult, and due to unfair
competition Tuscan extra-virgin olive oil sold through long marketing channels could not
obtain prices high enough to cover the production costs (higher than those of the “industrial”
olive-oils coming from other Italian regions or Mediterranean countries and named Tuscan)
[Belletti, 1996].
In the name regulation process one of the main problems arose in the definition of the areas of
production, owing to their heterogeneity, their different reputation and market prices. As a
consequence a conflict emerged counterpoising the agents belonging to the different
production Tuscan areas: local olive oil producers, their local producers’ organisations, local
administrations. As an agreement could not be reached, the Tuscan Regional Administration
took a position and in 1994, presented to the EU a request for a regional (Tuscan) designation
of origin (satisfying the olive oil producers of the least reputed areas), suspending the other
local requests; some production areas opposed the decision even at legal level, thus slowing
the process of approval of the designation. As a result a PGI was approved in 1998.
The analysis of the effects of the PGI of Tuscan olive oil shows positive results on the supply
chain firms, but at the same time a significant penalisation of the most reputed areas arises.
The PGI has determined a territorial reallocation (within Tuscany) of the reputation rent of the
more well-known areas in favour of the less well-known ones, but able to reorganise their
supply in order to penetrate the long channels [Belletti, 2000 and 2001].
After the approval of the Tuscan Extra-Virgin Olive-Oil PGI, the previous conflicts found a
solution in the approval in 2000 of the PDOs for Chianti Classico and Siena olive oil, while
other PDO requests for other areas of the region are about to be approved.
All the initiatives are only focused on the supply chain and the requests for PDO/PGIs have
not had any effects on the increase of differentiation and integration of the economic activities
of the rural areas, though at micro-local level some significant initiatives of valorisation of the
product have been undertaken. These initiatives lever on the cultural aspects of the product
and on the interactions with the territorial context. They have been fulfilled through direct
selling within the farm to tourists and/or through territorial consumption networks (olive oil
routes, wine routes, etc), without any specific function for the PDO or PGI [Belletti and
Marescotti, 1998].
When the reputation capital of the typical product is limited or partially dissipated, the focus
of local actors is oriented to increase the rent of origin by means of collective actions aiming
at stressing the information role of the “geographical name”, rather than being directed to the
share of the rent.
Actors in these strategies aim at using the name of a well-known region (for example
Tuscany), which per se (owing to the quality of landscape and culture, and in general to the
positive image for the consumer) can have positive effects in signalling the quality of the
product (halo country image effect).
This kind of action also requires the building of an organisational framework and some
mechanism for sharing out costs and benefits among the actors of the supply chain should be
fixed. Usually the establishment of an interprofessional body (Consortium) is required, in
order to discipline not only technical and production aspects (including those connected with
control activities), but mainly marketing and promotional activities (Antonelli, 2000;
Endrighi, 1999).
It is also necessary to aggregate a number of firms to create a “critical mass” of the product,
and this fact can determine a loose approach in the Product Specifications and a potential loss

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in the identity of the product. This can expose the typical product to the competition of
standard products in the market, and make it not paying for firms that produce the “original”
high quality product to use the PDO/PGI, as in the case of Tuscan Ham and Tuscan Pecorino
Cheese.
Re-construction of product reputation: the case of Tuscan Ham and Tuscan Pecorino Cheese
Tuscan Ham and Tuscan Pecorino Cheese are produced all over Tuscany, but locally their
characteristics are very diversified.
Nevertheless both products have progressively lost part of their appeal owing to the
competitive pressures of other areas, to the technological development of the agricultural
sector, as well as to the behaviour of the processing firms. These firms have loosened their
ties with local resources (i.e. loss of local breeds and substitution with non local breeds) and
conformed the processing techniques to the “industrialised” ones.
The relaunch strategy of the two products has been carried out by the processing firms
Associations, in order to attach value to the informative meaning of products origin through
promotion strategies on international markets and also through the recognition at international
level (PDOs) of the designations of origin that had been previously approved by the European
legislation. In both cases the driving idea in the definition of the Product Specifications was to
guarantee the participation of the processing firms, taking into account the existing
heterogeneity. As a result the Product Specifications contain a rather generic definition of the
characteristics of the process and of the product. In addition the origin of the raw material is
not strictly tied to the local environment: in the case of Ham the set area goes beyond the
whole Tuscan Region, while in the case of Pecorino Cheese neither local breeds nor particular
breeding conditions are mentioned.

3.2. Extended territorial strategies

In extended territorial strategies local actors use the typical product as a tool to increase the
competitiveness of the whole local economic system, showing a more integrated approach to
rural development. In fact local actors attach value to the typical product mainly for its
capacity of attracting consumers and promoting at the same time a differentiated basket of
products and services localised in the area.
There are some necessary pre-conditions to activate such a strategy. The main one is that the
typical product must represent an identity element for local actors (not only those involved in
the production process), and has a catalyst role in the planning of a comprehensive rural and
integrated development strategy. Social cohesion and a high degree of embeddedness of the
local community and of the firms (usually eased by the limited extension of the typical
product area of origin) are also very relevant, as they support the consolidation of the identity
based on the product in order to project it outside the territory (Ray, 1998). Other important
conditions are the attractiveness (real or potential) of the product for extra-local consumers,
and the possibility for the product to be sold within the area of origin, specifically through
short channels to maximise the positive effects.
This strategy involves many heterogeneous actors, with very diversified interests, that are
aggregated around the typical product. The firms involved in the typical product supply chain
are often marginal, and they are flanked by firms belonging to other economic sectors (hotel
owners, craftsmen), by the public policy maker, and by intermediate institutions representing
widespread interests (cultural associations, consumers associations at local or national level,
schools, etc.).
The final aim that aggregates the local actors in the implementation of an extended territorial
strategy is the exploitation of a rent of localisation connected to territorial quality, which
comes from the combination of the collective rent of reputation linked to the origin of the
product, and the rent obtained through the economic valorisation of specific advantages (both

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natural and constructed) coming from the rural space and the quality of local products and
services (Mollard, 2001). The territorial quality rent joins the product intrinsic quality to its
connection to a specific place (and its natural resources, history, culture, know-how), and it is
based on a combination of valorisation modalities of different products/services around a
common vision shared by local actors (Pecqueur, 2001).
The role a typical product may have within an extended territorial strategy is well exemplified
by the case of the cherry of Lari, where a production which is marginal to the local economy
is perceived as a “cultural marker” by the local community and a lever for attracting
consumers to a whole basket of goods and services supplied in the area.

The case of the cherry of Lari

The cherry production has a secular tradition in some hill areas of the Pisa province, in
particular within the Municipality of Lari, a small village counting 1.200 inhabitants.
Nevertheless the cherry production in the area has suffered the effects of a more general crisis
and restructuring of the agricultural activities in the area also connected to a widespread
industrialisation process (furniture and car industry), with a resulting decrease in the number
of producers (especially the professional ones) and in supply. Almost all the small and very
small farms in Lari area own some cherry trees, but only ten are the professional producers.
As a consequence, the bulk of the production of cherries is destined to self-consumption or
placed to friends and on short marketing channels, and only a limited amount of production is
sold on traditional market or modern distribution firms.
For a long time the valorisation initiatives around the product have been based on the
traditional annual village cherry festival, that has always involved a large share of the local
population for its organisation and realisation (local public institutions, schools, citizens,
tourist and cultural associations), attracting a great number of visitors. In Lari the cherry has
the function of a “cultural marker” for the population, of an identity and cohesion element,
while its contribution to the local economy is partly lost.
In the recent years the growing interest for typical products and the issues linked to the
preservation of biodiversity has contributed to the activation of valorisation and scientific
research initiatives on the typical Lari cherry, thanks in particular to some non local agents
(public research institutes), that aimed at preserving the numerous autochthonous varieties of
the Lari area.
Also owing to this external attention some valorisation initiatives are being carried out by
local agents mainly not belonging to the chain (local public institutions, cultural and tourist
associations). In particular the process of request of a PDO has been started, with the aim of
using the reputation of the cherry of Lari not so much to stimulate the agricultural activity, but
mainly to strengthen the image of the village and of the area outside for tourist promotion. In
this context the involvement of the local cherry producers is at present still very limited.
Sometimes the local actors of this strategy codify the relationship between goods and services
which compose the basket. An example is given by the “product routes” (wine routes, extra-
virgin olive-oil routes, etc.), by which local actors set a sign-posted itinerary inside the area;
the itinerary links together firms and activities (from handicrafts activities to rural tourism and
agro-tourism, from product history to culinary specialities, from cultural specificities to
folklore, etc.) connected with a typical product. Wine Routes are more and more important
and in some Countries they are regulated by specific laws that institutionalise links between
local actors (by means of a Wine Route Committee in which are represented economic
categories and public local institutions), create services specifically organised around the wine
produced (wine tasting centres or wine museums), and define minimum quality standards in
order to homogenise goods of the basket and to create network externalities into the local area
(Brunori e Rossi, 2000).

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3.3 A comparative analysis of the two main strategies
The description of the strategies we have carried out shows their very different nature and
characteristics. In the following table we have tried to highlight these differences referring to a set of
distinctive aspects, highlighting the main causes of failure of the valorisation initiatives.
SUPPLY CHAIN STRATEGY EXTENDED TERRITORIAL STRATEGY
General Management of product reputation rent Territorial promotion, development of the
objective connected to origin, or increase the rent global image of the rural area and
of origin by means of collective actions contribution to the generation of the joint
surplus.
Actors who Supply chain firms. Local public Local associations. Local public institutions
take the institutions may act as a mediator usually have a central role. Very often
initiative between opposite needs and interests. supply chain firms must be “stimulated” to
take part actively to the initiative.
Inclusion / Initiators tend to exclude other actors to Initiators tend to include other actors to
Exclusion maximise their rent, after reaching a encourage the maximum level of
minimum tradable quantity and participation, though safeguarding product
presence on the market. identity.
Approach Product-oriented approach. The Extended Process-oriented approach: focus
attention of the actors is focused on the on production process characteristics and
definition of the characteristics of the territorial externalities. Attention on
product and of the process. “memory”, history and culture if the typical
product is a “cultural marker” for the local
community.
Otherwise more room for scientific
institutions and external “authorities” in case
of territorial marketing strategy (territory as
name).
Role of PDO Central role either to create an Complementary tool, though often used
and PGI institutional barrier against unfair uses when the strategy is based on a very specific
of the geographical name and/or to typical product.
create/reinforce its appeal for the
consumers
Risk and Producers fail in coming to an Failure in convincing local supply chain
causes of agreement on PDO/PGI Product firms in joining the initiative.
failure Specifications. Inter-sectoral co-operation between firms
Producers may reduce product aiming at creating and regulating the
specificity to preserve price exploitation of the joint territorial surplus
competitiveness. may be difficult to reach.
Focus on the exploitation of the rent of
origin may cause a lack in actions to
improve and re-build product
reputation.

3.4. Between Supply chain and Extended territorial strategies

If the activation of the valorisation process is often linked to one of the two strategic outlooks,
very often the network of (local and non local) actors involved in the valorisation action
changes along time and other interests arise (Casabianca and de Sainte Marie, 1997).
Empirical evidence confirms that the strategies initially driven by actors’ focus on the supply
chain, easing the persistence of and the reproduction of specific local resources, can represent
the basis of an extended actors’ focus; viceversa extended territorial strategies, strengthening
the attractiveness of the area for consumers can stimulate initiatives activated by the supply
chain actors. An issue coming from the study-case analysis is that the co-existence of
strategies can give birth to conflicts on the role of typical product within the strategy, on its
definition and specifications (aspects connected to the production process), on the actors who
will benefit from the initiative (for example in the setting of the boundaries of the production
area when applying for PDO or PGI). Also the different effects of the strategies on rural
economy or on rural development may have important interrelations.

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In fact, though the supply chain strategy usually has a direct impact on rural economy and in
particular on the part of the rural economy connected to the typical product (which may be
more or less important in the rural area3), on the other hand the supply chain strategy may also
have indirect effects on a “complete” rural development. In fact, the defence of the rent of
origin may allow to avoid an under-remuneration of localised and specific assets of the typical
product production system (Belletti, 2000 and 2001). In such a way, positive externalities can
be reproduced (i.e. peculiar land arrangements, traditional plants and techniques) (Briand,
2001), thus enabling them to play an important role in the activation of extended territorial
strategies (Dubeuf, 1995).
In some cases the initiative of the valorisation strategy is taken by supply chain actors and
only later other local and non-local actors external to the supply chain, recognising the appeal
of the typical product, join the initiative in order to pursue their own interests, as applies to
the case of Zolfino Bean of Pratomagno.
From a supply chain to an extended territorial strategy: the case of the Zolfino bean of
Pratomagno
The Zolfino bean of Pratomagno is a local variety of the Phaseolus Vulgaris that is the result
of the spontaneous adaptation of the plant to the unfavourable environmental conditions of the
area of production (Appennino Mountains) and to the continuous selection operated by
farmers. The qualitative characteristics of the product, that essentially derive from its
territorial origin, are at the basis of its cultivation only in the area of origin and of its use as a
main ingredient in the preparation of many recipes belonging to the farmers gastronomic
tradition, though over time the production of this bean has suffered a big reduction owing to
the low production performances and to problems connected to the production process.
The first valorisation initiatives have been activated by a group of producers of the area who
in 1980 gave birth to the Zolfino Bean Festival, aiming at widening the market of the product.
The Festival has had a fundamental role in spreading the renown of the product out of the area
of production and it has been the first initiative capable of “creating a market”, not only a
local market, for this product. Within this framework the interest shown by one mass
distribution firm has contributed to convince the local producers of the market perspectives on
the product.
The growing demand has given rise to the creation of a Producers Association and has
strengthened the will to improve and support the production process and the image of the
product, with the collaboration of research institutions outside the area (University of
Florence, ARSIA), consumers associations (Slow Food), producers association for the
preservation of varieties in extinction (“Association of keepers-farmers”)
The increase in the demand of the product, in front of a limited supply has caused problems of
name abuses on behalf of producers and dealers coming from other areas, even extra-
European (Argentina, Chile, China). These phenomena gave origin to a necessity of activating
the PDO request procedures for the Zolfino bean of Pratomagno.
At the same time also public institutions at various levels (Municipalities, Pratomagno
Mountain Administration, Tuscan Regional Administration) started to consider the product as
a means to promote the area. A very important role was played by the introduction of the
Zolfino bean within a program financed within the EU LEADER initiative (Local Action
Group “Consorzio Appennino Aretino”)

3
As a consequence, direct effects are measurable in terms of job and income support, of keeping a living
economic and social activity in disadvantageous and marginal areas, and so on. Such effects rely on the
degree of appropriability of the rent by the actors of the local supply chain with respect to the actors of the
supply chain located outside the territory, which may keep a dominant position, especially on long-distance
marketing channels.

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In other cases the success of an extended territorial strategy can re-activate or strenghten the
production system of the typical product, and therefore stimulate the producers of the supply
chain to join the initiative or to activate a supply chain strategy, as in the case of the Lardo of
Colonnata.
From an extended territorial to a supply chain strategy: The case of the Lardo of Colonnata
Fat bacon is widely produced in the Apuan Alps area (north-west Tuscany) and linked to the
food consumption habits of the area, in particular to the exigency of preserving a very
energetic kind of food for the long working hours in the isolated marble caves of the area.
In particular in Colonnata, a small village (1.000 inhabitants) of the Apuan Alps, in the 2nd
half of the twentieth century the production of the fat bacon was carried out at family level in
the traditional way, though the raw material was not local (as the pig production activity had
disappeared in the area): ageing in marble containers (a kind of marble whose chemical
composition is specific of the area) in small very damp cellars with rock walls, a long ageing
period (at least six months), use of particular mixtures for herbing.
In the 80s a group of Colonnata inhabitants decided to organise a festival every year, in the
summer months, to let nearby living people rediscover the village, but mainly to let it know to
the high number of tourists present in the nearby coastal areas also aiming at revitalising the
local economy (based on the marble caves that for their peculiarity and history represent an
important tourist attraction, handicraft and food industry).
Fat bacon is identified as the symbol of the festival for its tight link with the local culture. The
festival is a success and attracts a wide number of tourists, but the product remains local and
somehow secondary, sold mainly in the village shops, though it becomes an important
“element” in the menu of the few restaurants of the village.
In 1996 the Colonnata fat bacon becomes well known when its production is declared out of
law for an incompatibility of the production process with the EU food safety regulations
(contact of the raw material with the marble during the ageing period, lack of structural
requisites in the ageing cellars). The Colonnata fat bacon becomes the symbol of the
disappearance of the typical products in front of the indiscriminate application of the safety
regulations created by globalisation for mass consumption products. As a result, the identity
feeling of the local community is strengthened by these events, but also non local actors, mass
media, consumers and cultural associations, non local institutions, scientific researchers get
involved in the problem.
A high renown is built for the product also out of the traditional area of production-
consumption and the geographical name of the product is used by actors even very far away,
some of which use even industrial or semi-industrial techniques for its production.
Nevertheless also the artisanal producers of the Colonnata nearby areas benefit from the
increase in the renown of the product.
As a consequence the “original” Colonnata fat bacon producers, supported by the local
administration, activate the procedures for the request of a PGI for their product: the Product
Specifications proposed establish a strictly traditional production process and the processing
and ageing area is limited to the inhabited centre of the village.
The resulting conflicts with the producers of the nearby areas (among which there are some
meat processing firms) are very serious and even the local administration tries to propose a
larger area of production. The conflict gives origin to a second request for a PGI, that of the
Apuan Alps fat bacon, the Product Specifications of which establish a wider area of
production and less rigid product characteristics.

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4. Typical products valorisation: an effective WAY to foster A “COMPLETE” rural
development ?
The analysis carried out has pointed out how the typical product may positively contribute to
rural development dynamic, not only as expression of a “product culture” shared by the
supply chain firms, but also and mainly as a “cultural marker” of a wider component of the
local economy and society.
In evaluating the contribution that typical products can give to rural development processes
by activation of valorisation strategies, it is necessary to consider the sustainable, endogenous
and integrated character of these strategies, which derives from the way the differentiated
actors interests are interconnected in the realisation of the strategy.
On the basis of the case studies analysed, some general considerations can be drawn with
reference to the two main strategic orientations.
In supply chain strategies the aim of the actors in the valorisation of the typical product is to
allow the remuneration and the reproduction of the local specific assets used within the local
production system.
Successful supply chain valorisation strategies can have positive effects on rural economy by
preserving the local firms from the competitive pressures of mass agro-food products, but the
entity of these effects depend on the structure of the supply chain, which greatly influences
the distribution of the added value among the local actors of the chain. In fact external firms
can expropriate the rent of origin locally generated, and the capability of the local production
system in constructing endogenous organisational forms become central to fulfil the aims of
the strategy.
If on the one side supply chain strategies can foster a part of the rural economic system, on
the other side their contribution to economic diversification in rural areas (integrated rural
development) is in general not relevant. In fact as long-distance marketing channels are the
most frequently used within these strategies, normally not even the local supply chain firms
have reasons for paying attention to positive externalities which traditional specific
production methods (i.e. extensive breeding techniques, the use of high-altitude pastures) can
generate on the quality of rural environment and landscape, and the local firms do not stress
the links with the local cultural heritage and local population. Traditional production methods
increase production costs which cannot very easily be covered - at least in the short term - by
higher sale prices of the product. Sometimes also in supply chain strategies firms may give
their contribution towards an integrated rural development as in the case of direct selling
(Pacciani, Belletti, Marescotti and Scaramuzzi, 2001).
Another important aspect is tied to the preservation of the originary specific identity of the
product. In fact very often the heterogeneity of the local firms involved in the strategy (in
terms of production methods, characteristics of the product, marketing channels, etc.) can
determine an agreement on very loose product specifications (Anania and Nisticò, 1999). As a
result, the quality of the product decreases along time due to the competition between firms
(free-riding), and the typical product loses its identity in the local area and on the market. The
typical product, and its geographical name, is hence not only an asset to exploit, but in order
to make the strategy sustainable it is necessary that common rules are set by local firms to
guarantee the reproduction of its identity and reputation (Belletti, 2001).
Extended territorial strategies consider the typical product non per se, but as an element of
aggregation that can stimulate the activation of a diversified range of economic activities in
rural areas. By this nature these strategies stimulate the diversification and integration of the
rural economy, stressing also the multifunctional character of local agriculture.
The premise of the success of extended territorial strategies is the presence of a pervasive and
intense link between the product and the local community (and not only the supply chain
firms). In this sense not all products are the same, depending on their symbolic and identitary

393
content within the local community, that give rise to a local culture strictly linked to the
typical product.
In extended territorial strategies local actors pay attention not (only) to long-distance
channels, but (mainly) to direct selling in the production area; this means that also other local
resources (i.e. landscape, environment, culture and tradition, historical and artistic assets)
being tightly linked to the product, add value to it. This makes it important for local firms to
pay attention to the positive effects of their activity on the environment and landscape.
The distribution of the benefits into the area of origin is a critical point for the sustainability
of the strategy, which depends on the presence of an institutional framework capable of
making a set of heterogeneous actors to take part and benefit from the territorial quality joint
rent. Hence it is necessary to set up rules to discipline the way local firms can exploit the joint
surplus, and in particular to guarantee benefits also to the firms of the typical product supply
chain.
Also for the extended territorial strategies the critical point lays in the endogeneity of the
strategy. Very often these strategies are activated by local institutions or by local cultural
associations, but in this case the involvement of firms of the typical product supply chain is
not easy. Empirical evidence has shown that if the local actors keep their autonomy in the
direction and management of the local development initiative, the role played by non local
actors in the activation and realisation of product valorisation strategies may be of great
relevance, also in an endogenous perspective.
Therefore typical product valorisation strategies may activate “complete” rural development
dynamic when they are managed by local actors who, starting from the use of local assets,
favour the integration of different sectors of activity allowing the preservation and
reproduction of the specific local assets used.

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